Credit, debt and financial governance in Chile

Abstract

This article develops the idea that indebtedness in Chile has become a particular way of “governing behaviors” that can be described as “financial governance”. Financial governance is characterized by three fundamental facts. Firstly, finance has served as a public policy whereby distributive conflicts have been postponed. Secondly, financialization consists of “creating” economically viable subjects from low-income households, for which the lives of individuals are classified and organized. Thirdly, material and symbolic debt management becomes a key element of democratic governance.